Regional economics dynamics
Agglomeration dynamics are stable on the short term and instable on medium-long term. In the so-called knowledge intense sectors, when a new sector is born, firms are not linked to a specific territory. However, when increasing returns to scale arise, firms begin to look for specialised services and tend to concentrate in a given location. A locational advantage is created and agglomeration economies are concentrated there. Only a technological shock can open opportunity for other territories to attract firms belonging to that sector. A similar dynamic can be assessed also in traditional sectors whose competitiveness depends on their capacity of enhance their linkages with knowledge intense activities. Given the high level of complexity characterising the system, the response to policies cannot be linear and it changes according to the number of linkages agents developed within the system as well as agents’ characteristics. In such a condition policy makers have to programme their interventions according to integration context procedure, since the response to the policy and the generalised cause will strongly influence the generalised effect of the policy.